Deposit %

[Nix01]

Morning all,

We're getting ready to find our dream house and was hoping for input on deposits.

I've read 15% is the minimum. May I ask what sort of deposits are the norm?

I think the max LTV you can get these days is 80%, so on a house worth £100,000, mortgage £80,000 / deposit for £20,000 = 20%.

There are huge variations in mortgage rates if you can put down 40%+ (would be nice!)

We've just bought as ftb with 12% deposit on a really good fixed rate. We went yhrough a broker who would be able to find a lender based on our circumstances ( some cc debt, 5.5 year old missed payments). Our mortgage offer with barclays is for up to 90% ltv

We borrowed 3* our combined income and have no childcare costs , low outgoings

It depends on the mortgage but generally the higher deposit percentage you have, the better the mortgage deal you can get, so it's worth scraping together as much as you can. Don't forget to account for paying the various fees that buying a house incurs too, survey costs, solicitors fees, stamp duty, mortgage arrangement fees etc.

Minimum is 5% deposit, however the higher the deposit the better rate you will get on your mortgage.

Yes, there is a material difference in the cost of a mortgage if the LTV is 60% vs. 80%. As you reduce your mortgage overtime through repayments, you'll get better deals everytime you remortgage assuming the value at least stays the same.

If you could invest the extra deposit money though at a better rate than the money you'll save by having a higher deposit, then don't bother trying to hit a 60% LTV straight away.